Cost-volume-profit analysis is a predictive tool for determining the profit consequences of future cost changes, price changes, and volume of activity changes.

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Cost-volume-profit analysis (also known as break-even analysis) is a tool used to forecast the effect of various changes on a company's profit, including cost changes, price changes, and changes in volume of activity. It helps businesses determine the level of activity required to break even or make a profit, and can inform decisions about pricing, sales targets, and cost reduction strategies.

Cost-Volume-Profit Analysis Is a Predictive Tool for Determining the Profit